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Author Question: Cabell Corp. bonds pay an annual coupon rate of 10. If investors' required rate of return is now 12 ... (Read 85 times)

LCritchfi

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on: Jul 10, 2018
Cabell Corp. bonds pay an annual coupon rate of 10. If investors' required rate of return is now
  12 on these bonds, they will be priced at
 
  A) a premium to par value.
  B) par value.
  C) a discount to par value.
  D) Cannot be determined without knowing the number of years to maturity.

Question 2

Other things equal, individuals in high-income tax brackets should have a preference for firms that
  retain their earnings rather than pay dividends.
 
  Indicate whether the statement is true or false
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
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carlsona147

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Reply #1 on: Jul 10, 2018
Answer to Question 1

C

Answer to Question 2

TRUE


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